the time at which the gains and losses from financial arrangements will be brought to account.

Which funds are affected?

The TOFA rules apply to a fund where the value of the fund's assets is $100 million or more. For the purposes of this test, the value of the fund's assets is worked out at the end the immediately preceding income year (being the fund's income year ending 30 June 2010 or a later income year). If the fund came into existence during the current income year, the value of the fund's assets is worked out at the end of this income year.

Once the TOFA rules apply to a fund, they will continue to apply to that fund, even if its value of assets later falls below $100 million.

A fund that does not meet these requirements can elect to have the TOFA rules apply to it.

Which financial arrangements will the TOFA rules apply to?

The TOFA rules apply to all financial arrangements that the affected fund starts to have during income years commencing on or after 1 July 2010. In addition, a fund may have elected to have the TOFA rules apply to its financial arrangements for income years commencing on or after 1 July 2009.

A fund may have also separately made a transitional election to apply the TOFA rules to their existing financial arrangements.

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If you follow our information and it turns out to be incorrect, or it is misleading and you make a mistake as a result, we will take that into account when determining what action, if any, we should take.

Some of the information on this website applies to a specific financial year. This is clearly marked. Make sure you have the information for the right year before making decisions based on that information.

If you feel that our information does not fully cover your circumstances, or you are unsure how it applies to you, contact us or seek professional advice.